Mizuho's Price Target Adjustment#
Mizuho has raised its price target for Range Resources Corp. shares from $49 to $55, while maintaining an Outperform rating. This adjustment reflects the company's solid performance in the first quarter of 2026, even as natural gas prices have weakened.
Performance Highlights#
Despite a drop in spot natural gas prices—down about 17% year-to-date—Range Resources exceeded Mizuho's expectations for earnings before interest, taxes, depreciation, and amortization (EBITDA) by approximately 7%. The company's free cash flow also surpassed estimates by around 9%. Over the past twelve months, Range Resources reported an EBITDA of $1.69 billion and maintained a price-to-earnings (P/E) ratio of 15.2, indicating that the stock may be undervalued based on current assessments.
NGL Price Guidance and Cash Flow#
Management has increased its guidance for natural gas liquids (NGL) price realizations, anticipating an additional $160 million in cash flow for 2026. This is despite higher processing costs linked to prices. The positive outlook on NGL pricing is a key factor in Mizuho's revised target.
Buyback Authorization and Analyst Insights#
As of the end of the quarter, Range Resources had $1.5 billion remaining in buyback authorization, providing the company with flexibility to enhance cash returns if the natural gas market remains favorable. In recent earnings, Range Resources reported adjusted earnings per share of $1.52, exceeding analyst expectations of $1.28, alongside revenues of $1.03 billion, which surpassed projections. Barclays has maintained an Equalweight rating on the stock with a price target of $41.00, reflecting a cautious but positive outlook on the company's performance.